It may not come as a complete surprise, but I use the telephone to generate leads and business for myself!
I had an interesting call with a new prospect recently and I thought I’d share the details with you.
The conversation went well and they saw the benefit in doing telemarketing, but then we hit a brick wall – the subject of fees reared its ugly head.
I’m totally transparent about the fact I charge a day rate of £250 per day (as of July 2016) and the prospect I was talking to, felt that it was ‘a bit excessive’ and they’d prefer to pay on a results-only basis.
As this is something I hear quite a lot, I thought I’d do a blog post on the topic.
To start with, I’d like to address the issue of paying on a results only basis.
Whilst I can see the attraction in this model for clients, there are also additional factors that need to be considered.
For the sake of this example, we’ll assume that the client wants to pay a fee on a per appointment basis – let’s say £100 per appointment.
In a typical 10-day campaign, I’d expect to make between 6 and 10 appointments – let’s say I make 8 appointments.
On the fee per appointment basis, the client would pay £800 i.e. £100 for each appointment.
So far, so good.
Based on my experience, the majority of the appointments will come towards the latter part of the campaign – I did a campaign recently where 70% of the appointments came from the last 2 days of the calling activity.
This would mean on a 10-day campaign, I’d get 5 appointments from days 9 and 10 meaning, that for the first 8 days, I’d make £300 or, a day rate of £60 per day – that’s £8.57 per hour in case you are interested.
You could argue that by day 10, I’d made a total of £800 which brings the day rate up to £80 per day or £11.42 per hour.
Of course, you could further argue that if I got more appointments, I’d earn more money – a very valid point. But, I’m not a telemarketer who sets appointments for the sake of setting appointments – the only time I put a client in front of a prospect, is when there is a genuine sales opportunity.
And then we have the other curveball with this pricing model – what constitutes a valid appointment?
Most of the people I know in my industry have had similar experiences when working on a fee per appointment basis – they set X amount of appointments, client then feels that Y amount of those appointments weren’t valid and refuses to pay for those appointments.
Net result being, telemarketing firm or telemarketing person out of pocket.
Now that I’ve discussed the fee per appointment model, I’ll go through why I work on day rate basis and why I charge the fee that I do.
A typical day of calling will start at 9am and finish at 5pm.
In that time, I will make at least 100 call attempts but as little as 5% of those may be successful.
Whilst getting appointments and leads is my ultimate objective, to get to those results, I have to work through prospects who are not interested, prospects who are unavailable, dealing with receptionists etc.
Once I’ve finished my calling for the day, I then need to produce a report for the client.
So, as you can see, there is quite a lot involved with what I do but there are some other practical reasons for how I charge as well:
Being self-employed, I have costs that I need to cover; office equipment, laptop, telephone bill, web hosting.
I also don’t have the luxury of paid annual leave, sick pay or a pension.
Finally, and most importantly, you are paying for my experience – I’ve been doing this for over 12 years and I’m good at what I do.
And that, is why I work on a day rate basis.